School Readiness Tax Credit Act

School Readiness Tax Credit Act Restored with Updated Tax Credit Amounts (LB754 – Section 17 through 19, Operative for taxable years beginning on or after January 1, 2024)

This Act provides two separate income tax credits beginning with tax year 2024. First is a nonrefundable income tax credit to persons who own or operate an eligible child care and education program that serves children who participate in the child care subsidy program established in Neb. Rev. Stat. § 68-1202. The credit to the provider is equal to the average monthly number of subsidy children who attend the provider's program multiplied by a dollar amount based on the quality scale rating of the eligible program:

Step Five $1,200

Step Four $1,000

Step Three $800

Step Two $600

Step One $400

Second is a refundable income tax credit to staff members who are both employed with an eligible program for at least six months during the taxable year and are classified in the Nebraska Early Childhood Professional Record System. Eligible staff members receive a credit equal to:

Level Five $3,500

Level Four $3,200

Level Three $2,900

Level Two $2,600

Level One $2,300

The providers and staff members must first apply to the DOR for the taxpayer to receive certification of the tax credit. Applications will be processed in the order received. The total amount of credits available under the Act is limited to $7.5 million for each tax year.

For additional information about qualifying, see the Nebraska Early Childhood Professional Record System website.

Below is information for prior years:

Explanatory Notice